[2016-12-17] Mint: Bitcoin’s rally crushed every other currency in 2016

[polynesia]

Bitcoin’s rally crushed every other currency in 2016. Here’s why

http://www.livemint.com/Money/SaLdZnuKq7KzVNAJ8rofvO/Bitcoins-rally-crushed-every-other-currency-in-2016-Heres.html

Bitcoin, that nebulous digital currency that trades in cyberspace and is “mined” by code-cracking computers, emerged as a better bet this year than every major currency, stock index and commodity contract.

The electronic coin that trades and is regulated like oil and gold surged 79% since the start of 2016 to $778, its highest level since early 2014, data compiled by Bloomberg shows. That’s four times the gains posted by Russia’s ruble and Brazil’s real, the world’s top two hard currencies.

After its 2008 creation, enthusiasts hailed bitcoin as the next big thing in foreign exchange markets, an obvious monetary evolution in an increasingly digital world. But by 2014, its value tumbled 58% as governments cracked down on its use and a major exchange lost account-holders’ funds. There are a number of reasons the hard-to-track currency is staging a comeback now, from capital controls in places like China to isolationist rumblings in the UK and US.